Cochin Shipyard Ltd IPO Message Board (Page 80)

In CANARA bank me se maximum kitni ASBA application apply kar sakte hai online ?

Hi please advise me on 2 things to maximise chances of allotment

1. Select cut off while applying?

2. Why would there be same chances for applying 1 lot vs 3 lots? If I apply for 3 lots and I do get picked up in the lottery then wouldnt I get allotment of 3 lots?

I applied through SBI ASBA on line but cut off price only is blocked .Not showing any discount at application or blocking level. May be after allottement the discounted price is deducted.

i''m applied through axis direct for 2 lots the amount will not blocked it remains same as in savings account and while i''m check in my order bookthe ipo status is ordered ,not excuted .
fresh application is not accepted ,for modification also same problem is faced

Day 1 IPO Subscription Data As on 4:30 PM
QIB: 0.72 X
HNI: 0.11 X
RII: 1.46 X
Emp: 0.12 X
Total : 0.867X

I have 4 demat and trading a/c, Zerodha, Edelweiss, Upstox and Ajcon. i have placed 4 bid through Bnak of india online banking on single PAN for each demat a/c. Is it ok or the application will get rejected ?

339.4- Actually 3 bid means bidding at 3 different amount/price level. It is not for RII, which is actually done at cut off level. 3 bids do not mean 3 applications. you can see 3 rows on screen while applying, there you can put 3 different amounts under same application.

Thanks All..

i will re-edit my application and add 7 lot in single application now

Listing will be around 520 i don''t see beyond it.

560++++ easily.

Ipo Details –



The Grey market is very excited about it and pricing it at a premium of 145/ Share, this is a listing gain of a Whopping 35-40%. Retail Investors will get an additional Discount on IPO price of 5% ie 21 /- per share. The company has cash of 220/per share post the issue and did a ROIC of 47% in FY2017. The Company has a post issue EPS of 23.7 /Share in 2017 and is offered at 18 PE Multiple. If we take out the cash, the IPO is coming at 432 minus 220/cash per share = 212/Share. We Value the company at 15 PE multiple for Operating business at 355 plus 220 cash/share at 575/share. We believe the company can Grow at 10% for the foreseeable future and generate 15-16% ROE.

Lets Understand the business in next 5 mins.



Factor #1- About the Business –

Cochin Shipyard commenced operations in 1975 and is one of the largest public sector shipyard in India in terms of dock capacity. The company can be divided into 2 part 1) Ship Repair Business and 2) Ship Building Business.



1. Ship Repair Business – This segment is 26% of the company’s revenues and has grown 38% in last 2 years and the industry is expected to grow at 10% CAGR going forward till 2021 . Cochin Shipyard has 39% Marketshare in Ship Repair business. When we met the management in its analyst meet, the management said that the repair business has 5x more profitability compared to Ship Building business. The current capacities allow the company to repair approximately 80-100 vessels per year.



2. Ship Building Business – This is 74% of company’s revenue and the company has order book of 3000 crores in this segment with navy and coast guard being the main client. The strong order book show visibility of revenues for the next 2 years. The government’s make in India project especially for defence vessels will help the company going Forward. The company gets 85% of its total revenue from non cyclical defence companies. This is basically a recession proof business.





Factor #2 – Reason of the IPO – The IPO is a Book building Issue as well as Offer for Sale. The company will get 979 crores whereas the government will get 489 crores. The Company has 2000 Crores cash on book and will get another 979 crores from the IPO, which will be used for a expansion of capacity in both Ship repair as well as Ship Building facility. The Total Capex of 2800 Crores will be completed in next 2.5-3 years.

Ship Building Capex – They would be Setting up of a new dry dock within the existing premises of Company (“Dry Dock”) ~1800 Cr .The construction commencement is expected from Jan 2018 and execution time of 30 Months

Ship Repair Capex – Setting up of an international ship repair facility at Cochin Port Trust area (“ISRF”) ~970 Cr The construction commencement is expected from Nov 2017 and execution time of 30 Months. This will Increase Capacity by 60% from currently 80-100 vessels per year.



Factor 3 – Peers Bankrupt – All the listed peers of the company are bankrupt and are facing major problems. The company will be the only good surviving company in a struggling industry due to its defence orders and debt free status. Reliance Defence, ABG and Bharati defence had an EPS of -8,-686,-438 respectively against a positive 27.56 EPS of cochin shipyard.





Factor 4 – Valuation – Post IPO the company will have a cash balance of 3,000 crores whereas at top range the issue is priced at a market cap of 5800 crores. The Cash Per share is roughly 220 per share. The company generated adjusted operating cash of 350 crores in FY2017 and its expected to remain at 350-450 crores till new capacity comes. The company did a mindblowing ROIC of 47% in FY 2017 and expected to remain at elevated levels for the foreseeable future. We value the Operating business at 15x Trailing PE Multiple at 355/share+ 220 cash on books = 575/Share.



Factor 5 – Moat (barrier to Entry) – High capital investments and the requirement of adequate cash flows act as major barriers to entry in this space. The whole industry is struggling except this company, we don’t see any new competition coming in for the foreseeable future. Moreover, critical factors such as expertise and technical know-how are some of the pre-requisites that limit the entry in this industry.

Factor 6 – Financials –





Conclusion – Cochin Shipyard is a superb bet on the Make in India Story and at IPO price its a steal with smart management whose revenues are primarily in defence space which are non cyclical in nature. The ship repair business generates great cashflow and is of great importance tactically for the country. We recommend a Strong Subscribe to it.

Is putting money in NII category better for allotment? Even for SIS IPO, RII is oversubscribed but NII is hardly subscribed till now. Or is it that NII apply at the last moment mostly?

Answers in order of questions: 1. NO. 2. YES

QIB and NII will put in their applications on the 3rd day in most of the cases..so please come back tomorrow to see the subscription numbers.

For HNI funding my broker(NBFC) is taking 6.50% interest Rate and 1% Processing fee +18 % GST.. for Cochin Shipyard

What is actual interest rate and processing charges for this ipo by other NBFC...

Please guide..

Thanks in Advance....

How many times are they funding. If you put Rs 10 lakhs, how much leverage ?

In Cochin they are taking 0.50 % margin , If i pay margin Rs 10 lac + Intererest + Proce. Fee then i can apply for Rs 20 Cr..

Is anybody facing issues with HDFC IPO Application page?? Page not opening up since morning!

Hi,
I applied today and found HDFC IPO application page working.

GMP @ 175-180
KOSAK 1150-1200

I have Rs.7.00 Lacs.
I can either apply 1620 (54 lots) shares under HNI invest or 450 shares (15 lots) under retail investor. Which option will give better returns and more shares?

Thanks in advance.

@LCB - If PAN is same, obviously those applications will be rejected.

Read here, different account mean with different PAN.

@Khemka - I don''t see any reason to get 00 share... one may get 0 share since it is lottery but with this logic, one can increase chance for allotment.

What''s the difference between General & employees IPO? Can anyone apply in employee quote? Why it''s open for public for subscription too?

If you are an employee of Cochin Shipyard, please contact your finance department or investor relations department for applying to the IPO. If you are not an employee, then ASBA is mandatory.

Dear Sir please suggest
I have 2 dmat account one on my name and another on wife''s name. Want to apply for 2 lots . Whether I should apply in different account or 2 lots in one account. Where is more chances of allotment.
Please suggest

ALLOTMENT IS BASED ON APPLICATION WISE. NOT ON LOT SIZE APPLIED.

COCHIN IPO:
GMP: 177-179

SIS IPO:
GMP:44-46

Is 21/- INR discount available for Retail investors also ? How to avail this discount when applying from SBI''s online ASBA service ? when ticked on Cut-off it automatically takes value of 432. should i untick "Cut off Price" check box and manually put ...411 ?

@omkar... Apply the ipo normally, and the discount will be shown in the next page... Only the discounted amount will be blocked after u apply... I just applied and got the discount as well...

Hope this helped...

Many thanks AMSKVM and Ashishldh... appreciate your help. :)

Dear Administration:

Please see that the old messages should be in order of their time original posting, but not on top.

Bali Ojha, if your are in ahmedabad share massage on eight zero zero zero seven five six four eight five

sir

i apply 2 application with difference pan card and dp id with same banks.
but i apply both same name in pan asba.how do it .